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It’s funny because some here thought inverting yields weren’t a...

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trader8888

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25/12/18

09:36

Post #: 36955995
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Originally posted by gougoodthing ↑

Treasury Flash Crash Inverts 1Y-2Y Curve

by Tyler Durden
Mon, 12/24/2018 - 14:17
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Things are just breaking left and right in the market now.

Shortly after the 1PM stock market close (but before the 2PM bond market closure) we pointed out that the 2Y yield had flash crashed on what appeared to be a short seller capitulating violently. Well, something else rather remarkable happened in that brief spike in activity: as 2Y yield tumbled first below 2.58% and then below 2.56%, the 12 Month (1 Year) Treasury - 2 Year Treasury curve inverted suddenly, sliding as low as -0.02%.

As one would expect, this was yet another of those "since 2008" events, because the last time the 1Y-2Y curve inverted was during the panic of the 2008 financial crisis.

And with a massive short overhanging still waiting across the entire curve as we discussed yesterday, expect many more such "breakage" events to take place in the coming days.

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It’s funny because some here thought inverting yields weren’t a bad thing (this time is different) I guess they are finding out the hard way now!

The perfect Christmas present if you’re willing to learn from your mistakes.
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